Beer: The Facts

The Brewers Association of Australia compiles Beer: The Facts based on annual data. It is updated as authoritative facts, figures and research about beer production and consumption in Australia are published, citing fully attributed data from independent sources.

It is designed as a fast reference to national and state-by-state information about Australia’s beer industry. Scan key statistics about beer via the section titles in the menu or by scrolling below...

Beer in the Economy

With 95% of all beer sold in Australia being made in Australia, our vibrant beer sector is a major driver of economic activity and domestic jobs, supporting vital cogs in industry from Australian farmers upstream to brewing, packaging, distribution and freight, all the way through to retail, tourism and hospitality…

The beer industry in Australia underpins $16.9 billion a year in economic activity – accounting for 1.02% of Australia’s GDP.

ACIL Allen Consulting, Economic Contribution of the Australian Brewing Industry from Producers to Consumers, February 2018.

As an economic driver, the beer industry supports key goods and services throughout the Australian economy, including ingredients/agriculture ($276 million), materials and packaging ($634 million), transport and freight ($307 million), marketing and sales ($530 million) and administration ($216 million).

ACIL Allen Consulting, Economic Contribution of the Australian Brewing Industry from Producers to Consumers, February 2018.

The Australian beer industry supports 105,148 full-time equivalent jobs throughout the economy (143,765 jobs in all, including part-time positions).

ACIL Allen Consulting, Economic Contribution of the Australian Brewing Industry from Producers to Consumers, February 2018.

For every direct full-time equivalent job in an Australian brewery (3,954), a further 26.6 FTE jobs are created elsewhere in the economy.

ACIL Allen Consulting, Economic Contribution of the Australian Brewing Industry from Producers to Consumers, February 2018.

Every Australian schooner (425ml) of beer sold in pubs and other licensed premises contributes $6.24 to GDP, while its off-license equivalent in packaged liquor store beer sales contributes $2.73 to GDP. Averaging these, every Australian-made beer contributes $3.92 to Australia’s GDP.

ACIL Allen Consulting, Economic Contribution of the Australian Brewing Industry from Producers to Consumers, February 2018.

Beer and Taxes

Australians pay amongst the highest excise (tax) on beer in the world, they then pay a further 10% in GST on the excise, then pay another 10% GST on top of everything at the retail end. Frankly, enough is enough…

Taxes on beer drinkers net the Australian Government almost $3.8 billion a year – that’s $1.992 billion in excise, $199.2 million in GST on the excise, then a further $1.58 billion in GST at the retail end.

ACIL Allen Consulting, Economic Contribution of the Australian Brewing Industry from Producers to Consumers, February 2018.

In Australia, beer excise is more than twice the OECD average. In fact, along with Scandinavian countries and Japan, Australians pay amongst the highest beer excise in the world, paying more than the UK, Europe, Canada, the USA and New Zealand. Australian tax rates on beer are also automatically increased twice every year.

Kym Anderson, Excise Taxes on Wines, Beers and Spirits: An Updated International Comparison, Table 4, University of Adelaide, September 2014. Table 4: Excise taxes on alcoholic beverages per standard drink of alcohol for wines, beers and spirits, 1 July 2014 (Australian Cents, beer assumed to be 4% ABV for comparison purposes).

At $0.58 excise on the $2.00 wholesale pre-tax beer price, Australians pay over seven times more than Argentina, Belgium, Chile and Poland ($0.08); over six times more than Austria, Hungary, the Netherlands and South Africa ($0.09); almost five times more than Italy and Greece ($0.12); double the beer excise paid in the US ($0.29) and almost double that of New Zealand ($0.33).

Kym Anderson, Excise Taxes on Wines, Beers and Spirits: An Updated International Comparison, Table 4, University of Adelaide, September 2014.

The single most expensive ingredient in Australian beer is Australian Government tax. Tax accounts for almost half (43%) of the price of a typical carton of full-strength beer. Of the $47.99 retail price, a staggering $20.85 is tax.

ACIL Allen Consulting, Economic Contribution of the Australian Brewing Industry from Producers to Consumers, February 2018. Based on one 24 carton (represented in the bottle graphic above) of full-strength 4.9% alcohol beer attracting $16.49 excise and $4.36 in GST on the RRP of $47.99.

Beer and Agriculture

Beer is a naturally brewed product borne of simple, locally grown ingredients: (predominantly) barely, hops, yeast and water) that help to support Australian farmers and regional communities…

As a customer, Australia’s beer industry sources 1 million tonnes* of barley for malting and 600 tonnes** of hops from Australian farmers each year.

Australia is world-renowned for producing high quality barley. In Australia, barley is second in crop size only to wheat, covering almost 4 million hectares sweeping from central and southern Queensland, throughout north to south mid-western NSW, northern and western Victoria, north to south central Tasmania, south-east and south-central SA and south-western WA.

Malt and Barley, Barely Australia 2018.

Domestically, malting barley demand is around 1 million tonnes per year. Locally-based brewers are tightly linked into Australia’s barley production and strong relationships exist between all facets of the industry – from breeder to brewer and all stages in between.

Malt and Barley, Barely Australia 2018.

Australian hops are internationally sought after. Hops are grown primarily for their flavour profile to produce beer and are farmed over 276 hectares in Tasmania and 355 hectares Victoria, yielding 600.9 tonnes in Tasmania and 837.4 tonnes in Victoria – over 1.4 million tonnes in all.

The Barth Report, Hops 2016-17, Barth-Haas Group, July 2017.

The crop yield for Australian hops in 2017 was significantly higher to meet growing demand to fill forward contracts. The Tasmanian crop yield increased from 530.7 tonnes in 2016 to 600.9 tonnes in 2017 – up 11.6%. While the Victorian crop yield increased from 574.1 tonnes in 2016 to 837.4 tonnes in 2017 – up 31.4%.

The Barth Report, Hops 2016-17, Barth-Haas Group, July 2017.

The predominant varieties of Australian hops are Galaxy, Super Pride, Ella, Pride of Ringwood in Tasmania, and Galaxy, Super Pride, Vic Secret, Pride of Ringwood, Topaz and Ella in Victoria.

The Barth Report, Hops 2016-17, Barth-Haas Group, July 2017.

When it comes to beer, sugars are essential. During the first stages of brewing sugars are extracted from the malted barley and, sometimes, cane sugar is added to finesse the taste and balance. However, during the fermentation process, yeast consumes virtually all sugars. Typically, this makes beer 99.9% sugar-free.

For the step-by-step video story on how barely, hops, yeast and water combine to make your favourite brew, see our Making Beer page.

Consumption

As individuals, and as a society, Australians today are better equipped and more informed about responsible alcohol consumption than ever before. This is evident in consumption per capita falling, decade on decade, for the past 40-plus years...

80.6% of Australians consume alcohol, comprising 83% of men and 73.5% of women.

Australian Bureau of Statistics, Australian Health Survey: First Results 2014-15.

Around 40% of Australians consume alcohol weekly. Just 6% drink daily – down from 9% in 2007.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

83% of Australians drink within recommended guidelines. Fewer people in Australia drink alcohol in quantities that exceed the lifetime risk – down to 17.1% in 2016 compared to 18.2% in 2013 and 21% in 2004.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

The Australian Bureau of Statistics records the long-term trend in apparent alcohol consumption in Australia in steady decline since the mid-1970s. Despite a modest 200ml increase in estimated consumption per capita from 2015 to 2016, Australians have been consuming less alcohol, decade on decade, over the previous 40 years.

Australian Bureau of Statistics, Apparent Consumption of Alcohol 2015-16, September 2017.

According to the ABS, Australians today are drinking less alcohol overall than in the 1960s, 1970s, 1980s, 1990s or 2000s. Across all alcoholic beverages, there were 9.7 litres of pure alcohol available for consumption in 2015-16 for every person in Australia aged 15 years and over. This is the second lowest level since the early 1960’s.

Australian Bureau of Statistics, Apparent Consumption of Alcohol 2015-16, September 2017.

The pattern of alcohol consumption has changed significantly over this period. Fifty years ago, beer accounted for three-quarters of all alcohol consumed. Today it is 39.9% beer, 37.5% wine, 18.8% spirits (including RTDs) and 3.8% cider.

Australian Bureau of Statistics, Apparent Consumption of Alcohol 2015-16, September 2017.

Over the past decade we have seen the popularity of low- and mid-strength beers grow markedly. Mid-strength and low-strength beers now account for one-quarter of all beer sales – mid-strength makes-up 20% of all beer volume available in Australia, while low-strength beer accounts for 4%.

Australian Bureau of Statistics, Apparent Consumption of Alcohol 2015-16, September 2017.

Over the past decade we have seen the popularity of low- and mid-strength beers grow markedly. Mid-strength and low-strength beers now account for one-quarter of all beer sales – mid-strength makes-up 20% and low-strength beer accounts for 4%.

Australian Bureau of Statistics, Apparent Consumption of Alcohol 2015-16, September 2017.

Australia is a world-leader in the market-share of low- and mid-strength beer sales, with industry leaders – CUB, Lion and Coopers – continuing to invest in these options, giving people greater choice and more control in their alcohol consumption. Beer is the only alcohol category that provides credible options for people to moderate their alcohol consumption.

Brewers Association summation of the data provided.

We’ve come a long way since the days of the 6 o’clock swill in the 1960s and when alcohol consumption peaked at 12.9 litres per capita in the mid-1970s. From that peak to 2016, the ABS reports that there has been a 25% drop in total alcohol consumption in Australia.

Australian Bureau of Statistics, Apparent Consumption of Alcohol 2015-16, September 2017.

For beer’s part, over the same period, the ABS notes that consumption has fallen from around 9.5 litres per capita in the 1970s to 3.9 litres today.

Australian Bureau of Statistics, Apparent Consumption of Alcohol 2015-16, September 2017.

Of the 17,262,957 Australians aged 18-75, 9,175,727 will drink beer at some stage each year.

Fiftyfive5 Research for Lion Nathan, January 2017.

Around 6.7 million Australians are regular (monthly) beer drinkers.

Fiftyfive5 Research for Lion Nathan, January 2017.

The World Health Organisation reports that Australia is at the low end of the spectrum of heavy episodic drinking (aka binge drinking) compared to culturally similar countries.

WHO, Global Status Report on Alcohol and Health 2014.

In fact, the World Health Organisation records Australia at 31 out of 37 similar countries and scoring less than half of the heavy episodic drinking rates of Finland, Greece, Austria, Ireland, Czech Republic, Slovakia, Belgium, Estonia, Portugal, Iceland, Sweden, United Kingdom, Hungary, Denmark, France, Russian Federation, Luxembourg and South Africa.

WHO, Global Status Report on Alcohol and Health 2014.

The World Health Organisation rates Australia a relatively low risk in its patterns of drinking scores.

WHO, Global Status Report on Alcohol and Health 2014.

Clearly, these figures and trends over time in Australia do not support the hyped notion of a crisis of increased alcohol consumption some alarmists would have the public and policy makers believe.

Brewers Association summation of the data.

Underage Drinking

Australian Government data shows that underage drinking and misuse has been continuing a dramatic decline. More needs to be done, but clearly Australia is tracking in the right direction...

According to the Australian Institute of Health and Welfare, 82% of 12-17 year olds in Australia do not drink any alcohol at all.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

This latest result of 82% abstinence among teenagers confirms a long-term trend of continuous improvement, up from 54.3% in 2004.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

Further, that those aged 12-17 drinking at lifetime risky patterns has fallen from 6.4% in 2004 to 1.3% in 2016.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

And that those aged 12-17 at risk of drinking harm on a single occasion has fallen from 17.2% in 2004 to 5.4% in 2016.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

What is clear is that underage drinking is in consistent long-term decline in Australia and the age of initiation (having a first drink) continues to increase. Of the 18% of teens who tried alcohol, the age of first drink has moved up from 14.7 years 2004 to 16.1 years in 2016.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

The table below details the decline in teen drinking patterns over 2004 to 2016.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

Pregnancy

Significantly fewer pregnant women in Australia are drinking and those that do are drinking less...

The rates of abstention among pregnant women have increased dramatically, up from 40% in 2007, 48.7% in 2010, 52.7% in 2013 to 55.6% in 2016 .

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

Women (aged 14-49) who did consume alcohol during pregnancy are doing so at low levels, with 97.3% consuming no more than 1-2 standard drinks over the course of their pregnancy in 2016 – up from 95.8% in 2013. The AIHW found that the percentage of women consuming at higher rates was too small to record with accuracy.

Australian Institute of Health and Welfare, National Drug Strategy Household Survey 2016, September 2017.

In 2012, Australia’s major beer producers – CUB, Lion and Coopers – voluntarily rolled-out pregnancy warning labels across their products and did so quickly, with 90% covered by July 2013. This means that the leaders in the beer industry were well ahead of the expected timetable of 80% coverage by the end of 2013.

Evaluation Report on Voluntary Pregnancy Labelling, Australian Government Department of Health, 2014.

In 2017, CUB, Lion and Coopers had been 100% compliant with voluntary pregnancy warning labels across all of their products for a couple of years.

Evaluation Report on Voluntary Pregnancy Labelling, Australian Government Department of Health, December 2017.

At more than $2.6 million a year, the beer industry through CUB, Coopers and Lion makes the largest investment in cultural change and education initiatives for young people, pregnant women and parents through DrinkWise Australia.

DrinkWise Australia 2018.

Attitudes to Drinking

In 2017, DrinkWise Australia undertook a 10-year review of its programs and activities, what emerged provides interesting insights into the changed and changing attitudes modern Australians have towards drinking...

In 2017, 63% of drinkers usually consume no more than two standard drinks, as compared to 48% in 2007.

Alcohol Beverages Advertising Code

A rigorous Alcohol Beverages Advertising Code (ABAC) in Australia ensures that advertisers cannot seek to induce uptake, target demographics or represent alcohol in an irresponsible way. ABAC covers the content and placement of all marketing, in both traditional and digital media, and any marketing activity associated with sponsorships outside of the use of brand names and logos. It is closely regulated…

In Australia, alcohol advertising, marketing and social media is heavily regulated through the Alcohol Beverages Advertising Code – a robust independent system that includes government representation. ABAC complements and adds to the Australian Association of National Advertisers’ system by providing specific and significant restrictions on the content and placement of alcohol advertising, including:

only portraying responsible and moderate use of alcohol beverages;

responsibility towards minors (under the age of 18) including that advertisements must not have strong or evident appeal to minors, use actors that may appear to be underage (actors are required to be 25 years or older) or be directed to minors by a breach of the placement rules;

responsible depiction of the effects of alcohol by not portraying alcohol as a means to sexual or social success, or change in mood; and

As of 1 November 2017, the ABAC Scheme has been further strengthened to respond to community expectations around placement of advertisements, in addition to the existing restrictions on content as outlined above. The new ABAC provisions include:

Mandatory age gating – where age restriction controls are available, these must be used to exclude minors;

If age restriction controls are not available, adults are expected to comprise at least 75% of the audience;

Advertisements cannot be placed within programs or content primarily aimed at minors, even if the placement technically complies with the relevant industry code;

No electronic mail advertising can be sent to minors; and

Better alignment between existing media codes, for example if the Commercial Television Industry Code of Practice, or the Outdoor Media Association Alcohol Guidelines, are breached, this will also now be a breach of ABAC.

In 2017, Colmar Brunton Social Research explored whether decisions made by ABAC’s Complaints Panel regarding alcohol advertisements and packaging are in line with community expectations. Quantitatively, an online survey of 1,225 Australians across locations, ages and genders measured community perceptions on 12 advertisements reviewed by Complaints Panel, seven of which were deemed by the Panel to breach the Code and were canned as a consequence. Yet just one was deemed inappropriate by the community.

Following a viewing of each advertisement, respondents were firstly asked whether they thought the content of the ad was acceptable or not acceptable to display/show and the reasons for this. This opinion was based on reactions to the ad before being aware of The Code. Respondents then read relevant sections of The Code and were asked whether they felt each advertisement should be permitted to be displayed/shown within the context of The Code.

Prior to being exposed to The Code, craft brewers Stockade Brew Co. (54%) was the only ad considered unacceptable by the majority of respondents (i.e. more people found the ads unacceptable than acceptable).

As for mainstream beer, the ABAC Panel forced a recall of the VB Blues promotional can as part of the 2016 NRL State of Origin series. However, the blue can packaging on an unprompted basis was deemed acceptable by 67% of viewers, with just 22% deeming it unacceptable.

These results indicate that ABAC’s rulings are conservative compared to community expectations. And, that with a 100% industry compliance with ABAC rulings, the ABAC system has teeth.

Brewers Association summation of the data.

Alcohol advertising meets community expectations. The Advertising Standards Bureau reports that alcohol advertising makes up just 1.5% of all advertising complaints, with just 0.6% of those actually requiring ASB determination.